A lot of the time, people are afraid of doing their own
taxes. They’ve been warned that it’s “too hard” or even told that it’s pretty
much impossible. And, while that may be true in certain complex tax situations,
there are many people who file their taxes on their own and who can do just fine
each year. You certainly don’t have to do your taxes on your own if the idea
scares you, but do know that some of the things you’ve heard about self-filing
are just exaggerated.
Myth #1: It’s Too Tough
As mentioned above, one of the major reasons people shy away
from doing their taxes themselves is because they’ve been told it’s just too
darn tough. However, that’s not always the case. A lot of people, in fact, have
relatively simple taxes that don’t require them to know or even understand a
large chunk of the tax code.
In general, as long as you have a standard job with an
employer and get your W-2 at the end of the year, filing your taxes should be
relatively simple. If you are in one of these simple situations, filing your
taxes yourself is probably going to be your fastest, cheapest, and easiest
option.
Of course, that’s not to say that there aren’t situations
where it’d be best to let a tax pro help you out. If, for example, you own your
own business, have a lot of investment assets, or have recently been through
some major tax-affecting changes, you should seek outside help to make certain you are receiving all the deductions and credits you deserve.
Myth #2: Audit Attraction
Another thing that people are often (wrongly) scared of is
that, if they file their taxes themselves, they’re pretty much asking for an
audit. That is a flat-out myth; nothing about doing your taxes on your own
makes you more likely to be audited; we promise!
As long as you fill your taxes out correctly and fully, you
probably won’t get audited, and, if you do, you’ll know that it was just random
selection, not because you filed on your own.
One thing to consider however is that an audit is a scary process. If you had used a professional, they will stand by you thru your audit. In this case, you need to weigh the pros and cons.
Myth #3: Low Earner
Finally, some people choose not to file their taxes
themselves because they think they don’t have to file at all. That’s only true if your
income was below a certain amount- it was $10,150 for single filers last year.
There are other exceptions too. The self-employed have to file
if they earn $400 or more in a given tax year, and besides, it’s always good to
file, even if you don’t have to by law. Filing is good proof of your income or
lack thereof for verification purposes, you never know when this information will be needed! #FileYourTaxes